It all seems very logical, the logistics process. And maybe it is. People sit behind a screen and order what they want. All that needs to happen then is for someone to send a package with the right products. Done.
But when you start looking at what is going on behind the scenes, you see that there is a bit more to it.
To make sure you are efficient when you start your webshop, below we briefly go over the key elements of a streamlined order fulfillment process.
Inbound
The logistics process starts at the "inbound." That's when your supplier or manufacturer delivers the products to you.
If anything goes wrong here, it disrupts the rest of the logistics chain. This is why it is important that all incoming deliveries are thoroughly checked for both quality and quantity. After all, you don't want to just assume that everything is correct and put all the products on the warehouse shelves indiscriminately. No.
Because if your customer assumes she'll be at the beach next weekend in her new bikini, but is sent the wrong size on Friday (due to mislabeling) or none at all (due to incorrect stock levels), she's probably not smiling about it.
And then, if you don't pull out all the stops to compensate her for this in some way, chances are she will order through another webshop next time.
So effective inventory management starts with the inbound. What's still important here is that you "train" your manufacturers or suppliers to deliver the goods in the most structured way possible.
It takes less time (and therefore money) to take in a pallet of nicely labeled and separated products than one where everything is crisscrossed without labels.
If we go back to the example of the woman who ordered her bikini, you'll see that the bottom line is that you need to know well for yourself how long it will take to get your stock levels up.
When your customer sees the message "out of stock" with his card reader in his hand, he probably surfs to a competitor and completes his order there.
Between taking the goods (inbound) and effectively shipping them to your end customer (outbound), effective inventory management is situated.
Efficient warehousing
A business is really nothing more than a collection of systems, processes and procedures. If you run an online store, one of the most important systems is the one you use to manage your stock.
A good inventory management system ensures that:
- Fast moving products in an ideal warehouse location. Goods that have to be ordered and shipped frequently do not have to be stored on the top shelf at the back of the warehouse. But close to the packing table.
- You are notified in time when the stock levels of a particular product are low. This is important because it gives you the signal when you need to replenish everything from your supplier or manufacturer - so that you don't lose a customer to the competition.
- Products with limited shelf life based on the FIFO, FEFO* or other principle are managed.
(*FEFO: First Expired, First Out. For food products, some products that enter the warehouse later may still need to be shipped earlier because the expiration date is closer to today).
Outbound
After inbound and efficient inventory management, proper order fulfillment is important. The outbound process starts when a customer places an order in your webshop.
From then on, it is important that the processing of the order be done quickly and correctly. The order must contain the right products. Because if there are returns due to an incorrect picking process, you can probably kiss your profit margin for that order goodbye (in part).
On top of that, you need to pay enough attention to how everything is packed. Not only should you choose the right shipping box (to avoid waste and overly expensive shipping costs), but also how best to fill the boxes. This is important if you want your products to reach your customer in optimal condition.
The Last Mile
For the "last mile" you can work with different couriers. Think DPD, PostNL, Bpost, GLS, TNT, UPS,...
Each of these couriers has its own characteristics and formulas. Depending on the services you want, the price varies. (Think about time slot deliveries, evening deliveries, with or without signing for receipt, customs shipments outside the EU,...)
Tip: Offer multiple shipping options in your webshop. We are convinced that it is an added value that the end customer can choose by whom, where and when he is delivered. The logistics process must therefore be tailored to this.
For example, customers today want to be delivered by GLS if they are home during the day. If they want evening delivery, they may be more likely to choose PostNL, and if they prefer to pick up in person at the post office they will choose Bpost.
Conclusion
If you want to give your customers continuity and low error rates, it's best to invest in advanced, automated warehousing systems. Only then will your webshop business grow in a sustainable way - with efficient e-fulfilment.
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